Budgeting For Your First Post-Grad Apartment

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Every college graduate knows there are two main things that come after graduating: Finding your first post-grad apartment and finding a job to pay for it (say hello to maturity!). For many people, graduating from college is the clearly defined transition between being dependent on your parents and becoming an independent adult (especially if you lived at home or in the dorms during school).

Walking across the stage is more than just a metaphorical transition between adolescence and adulthood-- it's a tangible one. Part of being an independent adult is learning how to pay your way, and for most college graduates, that begins with budgeting your expenses for your first post-grad apartment.

If you're about to take over your living expenses and move into your own place, take a look at these budgeting tips for your first post-grad apartment:

Understand the Initial Costs

The first step to building an effective budget is having a full understanding of all the expenses you'll be responsible for. And when it comes to renting an apartment, there are a ton of initial expenses people sometimes don't think about.

For one, simply applying for apartments typically costs anywhere from $50 to $200. On top of that, safety deposits, first and last months' rent, moving fees, and deposits are all often required upon signing a lease.

And the costs don't stop there. Remember that you'll likely also have to purchase some new furniture and plenty of kitchen, bathroom, and other home necessities-- you can't use those plastic dishes from your dorm room forever!

Budget for More Than Just Rent

The second part of understanding what your expenses will be is knowing what you'll have to pay each month besides rent. Create a budget and factor in the cost of utilities, cable, Internet, heating and cooling, grocery money, and even how much you're going to spend commuting each day.

Your commute costs may be as simple to define as a monthly public transit pass or as complicated as figuring out just how much gas and parking are going to cost you each day.

Don't Forget Fido

The final expense many people don't consider is the cost of having a pet. If you currently live at your parents' house and plan on taking your dog or cat with you, or if you're in the dorms and think you're going to get a pet when you move in somewhere, remember that they'll add quite a bit to your monthly expenses.

Sure, food, toys, and vet bills will cost you money each month, but you'll also often have to pay more for pet rent and fees in many pet-friendly apartment buildings.

Start Saving Early

Ideally, you should begin saving up money for your first post-grad apartment well before it's actually time to move out. There are a couple of reasons for this. First, setting aside money from each paycheck will get you into the habit of paying rent and bills each month.

And second, you'll want to have a good chunk of money saved up for those initial costs of moving into your own place. Start saving at least three months before you move out, and aim for setting aside enough money to cover initial fees and a full two months of rent.

Establish Your Budget

To actually establish your budget you'll need to figure out the exact income you're working with. If you're currently looking for a post-grad job, make sure what you're making right now can sustain you when you move until you find something better. After considering how much you're making on a monthly basis, allocate it appropriately.

Generally speaking, about one-third of your monthly income should go toward your rent (of course, you may find apartments in bigger cities are a little more costly than that). Other bills, food, and necessities will take up another third or more, and money spent on building a savings account, investing in retirement, and entertaining yourself make up the final third.

Remember that when you take over your expenses completely, your lifestyle will have to change a bit. After setting a budget, you'll likely have to cut down on spending in order to live up to it, which means fewer nights out and making some sacrifices.